Inflation in Economics: Types, Causes & Indexes
What Is Inflation?
Inflation is an economic phenomenon wherein a currency loses its purchasing value over time due to the rising prices of goods and services. That means consumers’ buying power also decreases.
Inflation is represented by a percentage, which shows the rate of change in price levels of a diversified set of commodities during a specific period.
Various types of inflation differ based on what the cause is. Knowing these can help you better understand inflation and how it affects your everyday life.
